Hong Kong, Taiwan, Singapore, and Malaysia are initiating health care
reform to meet the changing demands of populations with improved socio
economic status and access to modern technologies and who are living l
onger than in previous generations. Hong Kong, in particular, is facin
g a unique set of circumstances as its people prepare for the transiti
on in 1997 from a British colony to a Special Administrative Region of
China. While spending only 4% of its gross domestic product on health
care, it has a large and regulated public hospital system for most in
patient medical care and a separate, loosely regulated private health
care system for most outpatient medical care. In 1993 the Secretary fo
r Health and Welfare of Hong Kong initiated a year-long process to deb
ate the pros and cons of 5 fundamental programs for health care reform
. After a year of open consultation, options were chosen. We describe
the Hong Kong health care system, the fundamental changes that have be
en adopted, and lessons for reformers in the United States.